All Forum Posts by: Richard Roberts

@John Upperman

How are these BP meetups orchestrated? Are there any other keywords I need to chime in on besides Raleigh? Also, do you know of any other events, meetups, etc that are going on in the RTP area?

Sorry for all of the questions. I've only been living in the area around 8 months and have been looking to network with like-minded individuals!

@Edward B. ,

How would you go about finding the demand for things like townhouses vs SFH in terms of renting?

I'm not sure where I could find that sort of data.

@Edward B.

Would it be fair to say that SFH vs townhouse are equal in terms of rent-ability? I'm not singling townhouses out particularly, it's just that I've been on the search for an investment property and I never really considered buying a townhouse. In my experience, people have always brought a negative stigma with investing in townhouses. Would you say that it doesn't matter either way, as long as the price, location, and quality are right?


@Elizabeth O. @Kevin L.

HOAs here are absurd in most areas. Every townhouse I've looked at has an HOA fee from $45/mo to around $1500/yr (most of those are because of clubhouses and pools). It seems pretty hard to escape the HOA fee and I get very weary about a tenant not abiding by the HOA rules, however petty they may be. It seems with a SFH, there is less worry about rules and regulations (other than what's in the rental agreement) but more worry with maintenance and everyday work. I suppose it's all about perspective.

@Edward B. thanks for the input. Do you notice SFR being rented out more than townhouses? It seems like a SFR versus a townhouse all depends on the demographic of tenants I want to attract. My primary will never be my primary, I intend to jump out and rent then on to the next investment. What are your thoughts? I guess I'm just looking for the best choice for renting the property with quality tenants.

Unfortunately, my mission for a duplex has failed. I am looking into a single family home to invest in. I plan on renting out single family homes until I can get into multifamily homes and away from single family.

My question is are townhouses a smart investment for rent potential? I always hear how they are not a smart investment (unless I'm building them to sale/rent). It seems to me if a family were interested in renting, they would prefer a single home versus. essentially, an apartment home (i.e neighbors). The plus is that townhouses are significantly less in price, but I'm sure there's a reason for that.

I've been on the hunt in this hot market I'm living in for a duplex. No one wants to sell (no surprise) and the one's who do won't accept FHA financing. I could switch to Conventional likely but both lending professionals suggested FHA as the rates are relatively low.

The issue I'm having is the duplexes that are for sale are hovering around $200k range. The ones who will accept FHA financing either need some work (outdated, paint, floors, etc), are in a bad area, or both. I don't mind the work but after talking to another realtor, he mentioned I could have one built for around the same price. After some investigation he has come up with a figure around $220k or above for a new construction.

He insists that I get into a single family home with multiple bedrooms and rent out the other rooms. I have no desire to have roommates as I had for 6 years. I also mentioned to him that with a single family home, I am *speculating* that the appreciation will rise in a single family home and this is my only source of equity. His argument for a duplex is that if I decide to move, I am "stuck" with a duplex that no one will buy and will have difficulty purchasing a new home in the area I move to.

First of all, I am not sure why I would ever want to sell (for a while at least). If I were to move, I was told by another lender that I could do some desirable financing. He said this is because of my equity I would have already in a duplex plus my side being rented out (when I leave) - if I were to buy another duplex or single family home.

Sorry for the long post but I guess my question is, for a first time investor, I have always been under the impression that a duplex is an ideal investment. Is this not the case? Has anything I stated above incorrect or based on speculation? Is he correct in his perspective? He could be right, the market could keep rising in this area and a single family home work out in the long run. I guess I just feel that this route limits me to any kind of cash-on-cash return. I am essentially committing to years of financing and hoping the market keeps rising.

I am a newbie to all of this and my situation is pretty black and white. I have a car payment and a salary, that is all. Per consumer finance:

"To calculate your debt-to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income. Your gross monthly income is generally the amount of money you have earned before your taxes and other deductions are taken out."

My only debt is a car payment of $560.00 of which I usually pay $800. Given this ratio, my calculation comes out to 9%. There is a possibility I'm not doing this correctly. I'm assuming my current rent is not included? If so, that calculation comes to 22.7%.

@Albert Bui , yes I am looking into a multi-family property. Specifically a duplex for now.
@Kyle H. It seems I may have made a mistake in my calculation
@Zack Karp See my input above on my DTI.

@Zack Karp 

Thanks! That definitely helped. My credit score is pretty good (in the 700s) and my debt-to-income ratio is currently around 48%. I am not able to put 20% down but am definitely able to put down 5% at least. Does this sound like an FHA loan would benefit me more? I'm having a little trouble seeing the *advantage* of a conventional loan. Other than less paperwork and lower MIP (which drops off at some point right?) it's a little blurry to me.

I spoke with a Quicken Loan lender just to get a quick estimate of what kind of price range I was looking at for my first REI (also first home purchase). The lender stated that the best route for me was an FHA loan. When I inquired about the loan (because of the books I read), the theme of the conversation from him seemed to be "trust me I've looked for the best option for you.

I had a separate conversation with another private Realtor who owns his own company. I am in search of a duplex and he mentioned he had some deals going on. He directed me toward his lender, whom I will entertain. He mentioned that I should look into a conventional loan.

So my question is, is there an incentive for the lenders on what type of loan is offered? Would the QuickenLoans lender be hooking me up with an FHA loan because he is getting paid more? Would the local lender be suggesting a conventional loan because they are getting paid more?

@Adam Schneider - I am using an FHA